Aquestive Therapeutics, Inc. (NASDAQ: AQST)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001398733
Market Cap 627.61 Mn
P/B -152.74
P/E -9.10
P/S 14.46
ROIC (Qtr) -62.86
Div Yield % 0.00
Rev 1y % (Qtr) -5.43
Total Debt (Qtr) 128.30 Mn
Debt/Equity (Qtr) -31.22

About

Aquestive Therapeutics, Inc. (AQST) operates in the pharmaceutical industry, focusing on the development and manufacture of innovative pharmaceutical products. The company's proprietary technology, PharmFilm, enables the creation of medicines that offer non-invasive delivery, customized suitability for patients with dysphagia, and consistent therapeutic dosing. Aquestive's primary business activities involve creating complex molecule-based product candidates for pharmaceutical companies, which then market and sell them globally. The company's commitment...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 129.06M provide 16.28x coverage of short-term debt 7.93M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 163.56M provide exceptional 7.88x coverage of deferred revenue 20.75M, showing strong service capability backing.
  • Retained earnings of (415.14M) represent substantial 101.03x of equity (4.11M), indicating strong internal capital generation.
  • Tangible assets of 163.56M provide robust 24.12x coverage of other current liabilities 6.78M, indicating strong asset backing.
  • Cash reserves of 129.06M provide solid 133.61x coverage of other non-current liabilities 966000, indicating strong liquidity.

Bear case

  • Investment activities of (492000) provide weak support for R&D spending of 18.91M, which is -0.03x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (50.45M) provides insufficient coverage of deferred revenue obligations of 20.75M, which is -2.43x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (50.45M) shows concerning coverage of stock compensation expenses of 8.65M, with a -5.83 ratio indicating potential earnings quality issues.
  • Free cash flow of (50.94M) provides weak coverage of capital expenditures of 492000, with a -103.54 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (51.94M) show weak coverage of depreciation charges of 565000, with a -91.93 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 56.15 Bn 21.18 5.98 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 48.92 Bn 221.13 1.66 36.24 Bn
3 HLN Haleon plc 46.13 Bn 25.59 3.29 -
4 TEVA Teva Pharmaceutical Industries Ltd 35.27 Bn 49.54 2.10 17.07 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.76 Bn 17.11 6.95 0.00 Bn
6 VTRS Viatris Inc 14.87 Bn -4.03 1.05 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.08 Bn 32.91 5.25 0.43 Bn
8 ELAN Elanco Animal Health Inc 11.64 Bn 323.29 2.54 4.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.24 24.98
EV to Cash from Ops. EV/CFO -13.74 -85.40
EV to Debt EV to Debt 5.40 265.88
EV to EBIT EV/EBIT -13.34 -32.65
EV to EBITDA EV/EBITDA -12.55 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF -13.60 -32.62
EV to Market Cap EV to Market Cap 1.10 -10.98
EV to Revenue EV/Rev 15.97 -700.14
Price to Book Value [P/B] P/B -152.74 27.22
Price to Earnings [P/E] P/E -9.10 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.34
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.08
Interest Coverage Int. cover (Qtr) -3.05 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -207.50 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 65.69 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -168.80 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -175.24 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -169.63 37.66
EBT Growth (1y) % EBT 1y % (Qtr) -96.61 108.18
EPS Growth (1y) % EPS 1y % (Qtr) -54.35 52.88
FCF Growth (1y) % FCF 1y % (Qtr) -48.21 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -36.00 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.27 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 5.05 2.10
Current Ratio Curr Ratio (Qtr) 5.93 3.92
Debt to Equity Ratio Debt/Equity (Qtr) -31.22 -1.11
Interest Cover Ratio Int Coverage (Qtr) -3.05 -38.10
Times Interest Earned Times Interest Earned (Qtr) -3.05 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -118.40 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) -119.69 -63,260.88
EBT Margin % EBT Margin % (Qtr) -158.98 -66,726.96
Gross Margin % Gross Margin % (Qtr) 60.30 8,332.72
Net Profit Margin % Net Margin % (Qtr) -158.90 -66,728.37